mercedes benz

13
TURNAROUND OF MERCEDES – BENZ INDIA LTD.

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Page 1: Mercedes benz

TURNAROUND OF MERCEDES – BENZ INDIA LTD.

Page 2: Mercedes benz

INTRODUCTION

Karl Benz founder “ Benz & Co”. 1st October 1883. 1900,Benz & Co become world biggest automobile manufacturer. First Mercedes was delivered on 22 December 1900. On 28th June 1926 it get merged and to form Daimler- Benz AG.

Page 3: Mercedes benz

IMPORTANT SAYINGS OF TURNAROUND

Don’t Talk

Don’t Organize

Don’t Think

Just Do It…….

Page 4: Mercedes benz

BECOME A PLAYSTATION

Stop all internal discussions and conflicts….

It is time to “roll-out” smooth and well rounded activities

Your actions should be clear, well defined like a square

And each one of us should reach the summit of his art

Page 5: Mercedes benz

TURNAROUND MANAGEMENT

The present business scenario is one wherein constant change is the name of the game.

For any firm to survive in any industry, there has to be constant monitoring and improvement of its systems and operations

Process of bringing about a revival in the firm’s fortunes is what is termed as “Turnaround Management”.

Page 6: Mercedes benz

3 PHASE IN MB’z TURNAROUNDMANAGMENT

Phase I: Watching out for the danger signal

Phase II: Choosing appropriate Strategy

Phase III: Implementation of the change process

Page 7: Mercedes benz

PHASE I : WATCHING OUT FOR THE DANGER SIGNAL

• Decreasing constant sales• Decreasing profitability • Lack of planning• Inflexible CEO• A management team unwilling to

learn from competitors.

Page 8: Mercedes benz

PHASE II : CHOOSING APPROPRIATE STRATERY

1. Strategic Turnaround A new way to compete in the existing business (Enter

into a joint venture with Telco 1994). A new way to compete in the existing business ( by

launching Mercedes Benz E class)

Under this the first choice Increases market share Making product market relationship

Page 9: Mercedes benz

2. Operating Turnarounds

Asset reduction strategies : below BEP they should reduce their assets so the fixed cost will reduce.

Revenue increasing strategies : Not extremely below BEP they should apply new strategy so can generate revenue.

Combination strategies : above BEP they should use cost reduction strategy so firm profit can rise, by unnecessary cost cutting down

Page 10: Mercedes benz

PHASE III:IMPLEMENTATION OF THE CHANGE PROCESS

Implementation plays an important role in any turnaround management.

Identification of an appropriate strategy by itself will not guarantee success.

The success or otherwise of a Turnaround strategy depends on the commitment shown by the top management as also the operating management.

Likewise new CEO Mr. Juergen Ziegler of Mercedes – Benz India ltd has implemented the project with new strategies with help of his management. And achieved success.

Page 11: Mercedes benz

TO Achieve a Turnaround, You will Generally Need To Have The

Following Seven Things Present …

• A Viable Business • Time • Cash• Vision • Management • Stakeholder Support • Confidence In The Process

Page 12: Mercedes benz

Conclusion

Page 13: Mercedes benz

THANK YOU